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DAWN - the Internet Edition Next Story

October 3, 2003 Friday Sha’aban 6, 1424





WTO chief backs cut in farm subsidy



By Our Reporter


ISLAMABAD, Oct 2: Director General World Trade Organization (WTO), Dr Supachai Panitchpakdi on Thursday said Pakistan would get more market access for its agriculture products once the developed countries effects cut in domestic support and heavy subsidies on agriculture produce.

Addressing a press conference here on Thursday at the end of his two-day official visit to Pakistan after the Cancun ministerial conference, the DG proposed that at the moment at least 60 per cent reduction in exports and domestic subsidies by the developed countries was necessary to provide market access to the products of developing countries.

He, however, said he was looking for the complete elimination of all trade distortion measures to provide level-playing field to all member countries.

Dr Supachai said that reduction in these subsidies for countries like Pakistan that mostly depended on agriculture was necessary to increase their shares in the world trade.

“My aim is to achieve consensus on the agriculture modalities. And in agriculture we will create an atmosphere for further negotiations and hoping that G-22 member countries would come up with more proposals,” he said.

He said the political input was needed to carry forward the negotiations on modalities, discussion and other issues.

From the WTO secretariat, he said every efforts would be made to bring consensus on the number of issues particularly on the agriculture negotiations.

Dr Supachai further proposed to Pakistan that it should not depend only on exporting raw materials but it should go for more value addition to earn more foreign exchange.

He said in the services sectors, Pakistan should need more investment particularly in the information technology. Pakistan has more qualified professionals, which could get benefits by rendering their services in the markets of developed countries.

Replying to a question, he said that his suggestion was that WTO- member countries could make use of the understanding achieved at the Cancun ministerial conference on various issues in the preliminary session and consultation process.

He said, “we have concentrated on the agriculture at Cancun.”

He said, “I have to admit that no progress has been made on Singapore issues. It could be followed at Cancun,” he added.

To another question, he said he did not see the Cancun was total failure but “we have to learn from the meeting to bring the round back on the track.”

“We have done more work on agriculture, market access and Singapore issues. We would look for a meeting to get progress on the issue to get it back on the track,” he said.

Answering a question, he said by end of December 2003, General Council meeting of senior officials of member countries would be held at Geneva to review the progress on the issues.

Replying to a question, he said he always had no principle objection in free trade agreements (FTAs). But, he said, for global economy the multilateral trading systems was good.

He said that around 700 programmes were already conducted to enhance the capacities of the developing countries to participate actively in the trade negotiations.

To a question, he said there was a pressure of time and transparency to finish the Doha development agenda by end of next year.






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